Ryanair scuttling 737 orders

Ryanair, the budget airline serving Europe, said it’s scuttling its plans for up to 200 new Boeing 737 airplanes it had said it needed for future growth. The Irish airline said its negotiations with Boeing have failed.

Ryanair currently operates a fleet of 202 737-800 airplanes and was looking to expand and buy more planes. The airline added Friday that its decision won’t affect its delivery of 112 737s in the next three years, but instead of buying additional planes after that, it will reduce its growth and capital expenditures and return cash to shareholders.

“Ryanair has made clear to Boeing that we will not order aircraft if we believe that either the pricing or the other contractual terms and conditions will be inferior to those which we currently enjoy, as this would not be a wise or sensible use of shareholders funds. We have no plans to reopen discussions with Boeing or any other aircraft manufacturers,” Ryanair’s CEO Michael O’Leary said in a statement.